Kalshi Faces $54M Class Action Bet

Kalshi Faces Class Action Over Iran Leader Prediction Market

• Kalshi is facing a proposed class action for not paying out bets on whether Iran’s Supreme Leader Ali Khamenei would leave office.
• The disputed market saw $54 million in trading volume before being halted due to reports of US and Israeli airstrikes on Iran.
• Traders claim Kalshi did not disclose a “death carveout” until after the strikes, leading to continued “yes” bets.
• The lawsuit was filed by traders Adam Risch and Yonatan Gliksman, alleging breach of contract and violations of California law.
• Kalshi CEO Tarek Mansour stated that the platform does not offer markets tied directly to a person’s death and promised reimbursements for fees and net losses.

Kalshi is under legal scrutiny as traders seek damages over undisclosed terms in the $54 million Iran leader prediction market. The case highlights regulatory challenges faced by prediction platforms in the US.